Fair Isaac Corporation stock research
FY2023 Q4
Fair Isaac (FICO) Gross Margin — Quarter Ended Sep 30, 2023
Compared to the prior quarter, revenue declined and cost of revenue increased, leading to a lower gross profit and a weakened gross margin. Versus the same quarter last year, revenue grew while cost of revenue remained nearly unchanged, yielding improved gross profit and gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q4
Compared to the prior quarter, revenue declined and cost of revenue increased, leading to a lower gross profit and a weakened gross margin. Versus the same quarter last year, revenue grew while cost of revenue remained nearly unchanged, yielding improved gross profit and gross margin.
- The primary driver of the year-over-year margin improvement was the combination of higher revenue and stable cost of revenue.
- Sequentially, gross margin weakened as cost of revenue rose while revenue fell. Year-over-year, gross margin strengthened as revenue growth outpaced cost growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
78.7%
Gross profit
$306.9M
Revenue
$389.7M
Cost of revenue
$82.8M
Quarter-over-quarter change
-3.2 pts
Year-over-year change
+2.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $380.3M | $300.5M | $79.8M | 79.0% |
| Jun 30, 2023 | $398.7M | $326.8M | $71.8M | 82.0% |
| Sep 30, 2023 | $389.7M | $306.9M | $82.8M | 78.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-3.2 pts
Year-over-year change
Sep 30, 2022
+2.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the year-over-year margin improvement was the combination of higher revenue and stable cost of revenue.
Sequentially, gross margin weakened as cost of revenue rose while revenue fell. Year-over-year, gross margin strengthened as revenue growth outpaced cost growth.
Monitor changes in cost of revenue, as its sequential increase compressed margins in the current quarter.